Bringing in money to Vancouver

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web2000
Member since: May 06

Posts: 849
Location:
Post ID: #PID

Posted on: 07-09-10 10:39:46

Just curious to know what are the primary residential ties which make u to pay tax on world wide income. Are getting OHIP, SIN create primary residential ties. What is the difference between primary and secondary residential ties.

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 07-09-10 10:47:44

Quote:
Originally posted by web2000

Just curious to know what are the primary residential ties which make u to pay tax on world wide income. Are getting OHIP, SIN create primary residential ties. What is the difference between primary and secondary residential ties.

Please read from the link provided from CRAs website in my previous post and you would know every thing you need to know about the Residential Ties for tax purposes.

-----------------------------------------------------------------

Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

web2000
Member since: May 06

Posts: 849
Location:
Post ID: #PID

Posted on: 07-09-10 10:56:09

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

Just curious to know what are the primary residential ties which make u to pay tax on world wide income. Are getting OHIP, SIN create primary residential ties. What is the difference between primary and secondary residential ties.

Please read from the link provided from CRAs website in my previous post and you would know every thing you need to know about the Residential Ties for tax purposes.

I read that and there is some confusion. It says

1. If person gets OHIP then that creates residential ties.
2. Social ties (What is it?)

But I am not sure that in above case person will be paying tax on world wide income. Just consider a case where a person spends 5 months (approx 153 days) in Canada in any taxation year and the remaining 7 months outside of Canada. He has OHIP covergae and he is fulfilling the time requirement to keep the OHIP. He has worldwide income and that income (Agricultural income) is exempt from tax in his home country. In such conditions will he be paying tax in Canada?

According to CRA rules 99.9% people will have ties with Canada as u will have at least OHIP.

Thanks

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 07-09-10 11:31:38

Quote:
Originally posted by web2000

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

Just curious to know what are the primary residential ties which make u to pay tax on world wide income. Are getting OHIP, SIN create primary residential ties. What is the difference between primary and secondary residential ties.

Please read from the link provided from CRAs website in my previous post and you would know every thing you need to know about the Residential Ties for tax purposes.

I read that and there is some confusion. It says

1. If person gets OHIP then that creates residential ties.
2. Social ties (What is it?)

But I am not sure that in above case person will be paying tax on world wide income. Just consider a case where a person spends 5 months (approx 153 days) in Canada in any taxation year and the remaining 7 months outside of Canada. He has OHIP covergae and he is fulfilling the time requirement to keep the OHIP. He has worldwide income and that income (Agricultural income) is exempt from tax in his home country. In such conditions will he be paying tax in Canada?

According to CRA rules 99.9% people will have ties with Canada as u will have at least OHIP.

Thanks

Please also read the interpretation bulletin IT-221R3 for further clarification. The link to the same is at the bottom of page on Residency Status and is also posted here http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html#P71_3751 This will give you answers and clarifications to your other questions as well. However, as stated earlier only CRA can decide about your status as each case can be different. CRA will look at the whole situation and OHIP card is only one smaill point for them to consider about the residency status.

You can be a Citizen of Canada but can still be Non Resident for Tax purposes. Or, you can only be a visitor on work permit but can still be considered Resident for Tax purposes.

If you need further clarification, then please get a ruling from CRA on your personal situation.

Thanks.

-----------------------------------------------------------------

Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

john26
Member since: Jan 07

Posts: 167
Location: Calgary
Post ID: #PID

Posted on: 07-09-10 12:06:52

A question for experts

I entered Canada in 2007 on work permit. CRA determined that for the tax purpose I am a resident of Canada. I became permanent resident of Canada in April 2010 and did the landing internally inside Canada. I have an NRE account in India and now I want to wire transfer the money to Canada. In this situation, when I did not do landing from out side Canada, will this money transfered from India will be considered as "money brought into Canada during immigration" and will not be taxed...?

OR

I will be required to pay tax on the interest earned in the NRE account after the date when CRA declared me resident for tax purpose?

web2000
Member since: May 06

Posts: 849
Location:
Post ID: #PID

Posted on: 08-09-10 09:49:10

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

Just curious to know what are the primary residential ties which make u to pay tax on world wide income. Are getting OHIP, SIN create primary residential ties. What is the difference between primary and secondary residential ties.

Please read from the link provided from CRAs website in my previous post and you would know every thing you need to know about the Residential Ties for tax purposes.

I read that and there is some confusion. It says

1. If person gets OHIP then that creates residential ties.
2. Social ties (What is it?)

But I am not sure that in above case person will be paying tax on world wide income. Just consider a case where a person spends 5 months (approx 153 days) in Canada in any taxation year and the remaining 7 months outside of Canada. He has OHIP covergae and he is fulfilling the time requirement to keep the OHIP. He has worldwide income and that income (Agricultural income) is exempt from tax in his home country. In such conditions will he be paying tax in Canada?

According to CRA rules 99.9% people will have ties with Canada as u will have at least OHIP.

Thanks

Please also read the interpretation bulletin IT-221R3 for further clarification. The link to the same is at the bottom of page on Residency Status and is also posted here http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.html#P71_3751 This will give you answers and clarifications to your other questions as well. However, as stated earlier only CRA can decide about your status as each case can be different. CRA will look at the whole situation and OHIP card is only one smaill point for them to consider about the residency status.

You can be a Citizen of Canada but can still be Non Resident for Tax purposes. Or, you can only be a visitor on work permit but can still be considered Resident for Tax purposes.

If you need further clarification, then please get a ruling from CRA on your personal situation.

Thanks.

Thanks for the information.

After going through the doc I could not find clear cut rule which can help to decide if a person has to pay or not to pay tax on foreign income. I thought it would be as simple as in India where NRI status is determined based on no. of days u stay out of India. Only CRA knows if u will be resident or non-resident. You yourself cannot determine it. This is a problem as asking CRA means flagging ur file which can be audited more often than if u don't tell them.

I think a good accountant can help in this regard.

Achtung
Member since: Sep 10

Posts: 2
Location: Dubai
Post ID: #PID

Posted on: 11-09-10 17:09:11

Thanks...I landed initially in April 2009 in Vancouver and stayed there for a month. I only opened the Now i shall be relocating permanently in Nov 2010 and will be carrying CAD 70K. I have opened a bank account and also paid up the entire amount of premium due on health care. I've also filed for taxes citing zero income for the last fiscal year.

I'm assuming that since I wasnt in the country for over 153 days I should be able to get away without being taxed.

Please correct me if i'm wrong !

Contributors: Pramod Chopra(4) rajvikas(3) web2000(3) Achtung(2) hchheda(1) john26(1)

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